ASP Isotopes - Earnings Call - Q4 2024

Transcript

Speaker 2

Good morning, good afternoon, and good evening to wherever you are in the world. My name is Nick Lawson. I'm the CEO of OceanWall, and I'm delighted to welcome you to the ASP Isotopes fiscal year 2024 results webinar. We're delighted to have with us Paul Mann, Chairman and CEO, and Dr. Hendrik Strydom, who's ASPI's Chief Technology Officer. Firstly, gentlemen, congratulations on this morning's press release regarding Utopia 176, an incredible milestone for you. Before you tell us more about that, can you take us through the 2024 results, please, and also a review of Q1 25, your outlook for 2025, and then give some comment on today's announcement, please? Gentlemen, over to you.

Speaker 1

Yeah, thanks, Nick, for hosting this call. I'm joined here by Dr. Hendrik Strydom, who is our Chief Technology Officer. I'll let Hendrik introduce himself in a moment. We're an ASP listed company. If you could just look at the forward-looking statements and disclaimers in our 10-K alongside this webinar, that would be great. It contains a lot of information in our 10-K published last night. The fourth quarter was exactly our expectations. PET Labs are fairly stable business and, you know, $4.2 million in revenue for the year. You know, nothing unusual is really happening so far, so far this year. We haven't given guidance. We don't expect to give guidance for this year. You know, I can't give guidance for the first quarter on this conference call because it's obviously not, it wouldn't be appropriate.

The main highlights for the quarter, for me, were the starting up of three manufacturing plants to start commercial production. None of them go easily, but they all went. The Carbon-14 plant obviously had a feedstock issue in terms of getting the feedstock from Canada. That arrived in early February, and that plant is now enriching Carbon-14. We still need to get our second batch of feedstock into North Africa. We should arrive, I think we said we should arrive around the end of March, beginning of April on the storm. On track, that should arrive fairly soon. The Silicon-28 plant has had a number of challenges while we were commissioning. We've got an incredible engineering team, and they were able to work through those challenges.

One example was the cryogenic pump is supposed to produce helium at minus 120 degrees Celsius, and we need that in order to decycle cyanide out of the plant and balance the plant. We're going to get down to minus 90 degrees Celsius. You know, in a couple of weeks, get the OEM supply out, and they've got it fixed. You know, a couple of compressors, the impellers broke. Again, we've got a great team of engineers. They paired those impellers and got it working. You know, I think it's a pretty incredible engineering team we've built over the last three years down here in South Africa, and the challenges they're able to deal with and just work through. Utopia 176 also had its fair share of problems as well. The tunnel flat mass spectrometer didn't work.

Hendrik spent three weeks juggling all of that. The vacuum pumps were a bit inaccurate, but again, a few weeks juggling through those. Finally, this morning we announced that we're successfully enriching Utopia 176, and we started enriching for commercial samples now. They're the main highlights in my opinion, Nick, for the quarter. I'll hand over to you for any questions now.

Speaker 2

Okay, so we've got a couple of questions that are coming in. In terms of the first one, in layman's terms, can you explain what the relevance of enriching Ytterbium is to enriching uranium, please?

Speaker 1

Hendrik, do you want to ask this question or?

Speaker 0

Both of them.

Speaker 1

Okay. They're probably more similar than different, I would say. You know, actually, ytterbium has, both have different spectroscopies. Ytterbium has five isotopes, whereas uranium has only really got two significant ones. It's easier to enrich a product where you've only really got two isotopes rather than where you've got five. You know, ytterbium is a bit quicker than uranium, but uranium has to be vaporized at a higher temperature, so different materials are required in the production vessel, and also it's radioactive. Is that fair? I guess also the spectroscopy, in terms of the 3000 Kelvin, is less in the ground state, which is one of the problems that others have, isn't it? We didn't talk about that.

Speaker 0

Yeah, I think firstly, if we go back to the lasers, you know, lasers since the 80s and 90s have developed, it's been used in the semiconductor industry. They've got a high spec to it, and that suits us very well. We buy off-the-shelf lasers today. No development there. What we do to the lasers is to shape the beam. I think that's the big difference. Going towards uranium, yes, in the ground state at 3000 Kelvin, not that many left there. You need to address the spectroscopy and get hold of all the 235 in there.

Speaker 2

Okay, questions are coming in. Obviously, everyone's aware that there's a Q&A button on the Zoom function. We've got 197 participants. We'll do this fast and furious poll as well. What are your expected revenues for ASPI in 2025? If you can, talk about that. Will you reach free cash flow positive by the end of the year?

Speaker 1

We haven't given guidance for the year. We don't tend to give guidance on this call. But, you know, if you look at the contracts that we've signed, we should be able to add them up and work out what an annualized run rate would be from the facilities. And so ytterbium, you know, and we think we can get maybe to a kilogram per year of production of ytterbium. And, you know, we've kind of said, think about $20,000 a gram for ytterbium. And for Carbon-14, we've said that we have a take-or-pay contract for a minimum of $2.5 million a year. Perhaps we'll do a little more than $2.5 million. They can take more. They've certainly shipped feedstock for more than $2.5 million of product this year. Maybe that's slightly better than $2.5 million.

We've kind of said we've got two small orders right now for Silicon-28. We'd expect to get some more orders over the next few months. We're talking to three or four additional customers who we expect to place orders. I think our two customers who have already signed up want to increase the size of their orders this year as well. That kind of gives you an idea of what ASPI will do. PET Labs, you know, did $4 million last year. That should grow nicely this year because we've invested heavily in that business. That should grow nicely this year.

In terms of free cash flow positive, if you add those revenues up and you spend in terms of our cash operating expenses, we'll see we should get cash flow positive during the second half of the year.

Speaker 2

The press release said the company anticipates now being able to proceed with the plans to construct the Nickel-64, the Gadolinium-160, and the Lithium-6 plants. Could you give some guidance on the timing of the construction around those plants, please?

Speaker 1

Yeah, so Hendrik and his team built the ytterbium plant in just two months. It took six months to procure it, but two months to actually put it all together and construct it. Then they spent about six months commissioning it and, you know, fighting through kind of various small problems that occur during the early stages of any plant startup. You know, I'd like to think we have the first plant kind of coming into action later on this year. We'll see. Depends on the procurement. You know, we require export permits from certain countries to ship lasers into South Africa. We require an import permit to bring it into South Africa. They can take some time to get. They're out of our control. We've already applied for the export permits from the countries we need it from.

You know, we'll wait and see how long it will take.

Speaker 2

Hendrik, the press release talks about the expectation with Utopia 176 getting to 99.34%. What's the nameplate on the facility? How quickly do you expect samples to be approved?

Speaker 0

To get to 99.75% in one step is not possible. We do it in batches. The first batch will go up to 88-90%. That takes a long time. The last bit takes about a day to get to 99.75%.

Speaker 1

Yeah, we haven't given guidance when we're going to ship it. I think we've said, you know, first half of the year, probably towards end of the second quarter, something like that, you know.

Speaker 2

Okay. Given the SMR race in the US, are there any plans, ambitions to expand manufacturing enrichment capabilities in North America?

Speaker 1

Absolutely, we have plans to do that. It's likely we'll try and have a partner rather than by ourselves. If you look in South Africa, we've partnered up with Necsa, the South African Nuclear Energy Corporation. We may well partner up in the United Kingdom with a partner there. We'd like to partner up with someone in the United States as well to help through the regulation and licensing challenges. Constructing any form of uranium or nuclear plant, it's the licensing and the regulation side that takes the time. It's the longest part of the process.

Speaker 2

Is there, I mean, I sort of know the answer to this. Can you give any comment on the timing of the QLE spin-out?

Speaker 1

Yeah, we haven't given any guidance there as well. What we have said is that we'd like to do it when there were two things that had to happen in order for us to be able to spin out QLE. The first is we had to identify the location where we can build the first uranium plant. Obviously, we've now decided that's now Pan and Dharma in South Africa. We're working hard with Necsa now to secure the appropriate licenses and permits that we need to build that plant and to build the test batches and research up there. The second thing we needed was to see line of sight to cash flow break even or better than ASP Isotopes side. Obviously, now we've got three plants up and running. I think that box is ticked as well.

I'd like to think we do it, you know, as soon as possible. Part of it is out of our control. We need to file some documents with the SEC and they get reviewed by the SEC. It's, you know, sort of a 30-60 day process, seeing if it goes smoothly. We could be doing it quite soon.

Speaker 2

Yeah, and I think you and I can maybe mention that the appetite, obviously by the investment banks, that this hits the absolute sweet spot in terms of this sort of energy transition profile for large investment banks. Another question. Have you signed any supply agreements for Ytterbium? Are you still on pace to sell a kilogram this year? And the price reference here is $20,000 a gram. Is that still correct?

Speaker 1

Discussions with customers are all around $20,000 a gram. Customers want to have a sample before they place an order. What the customer will have to do is check that when they put it in, when they're radiated with a neutron, that they are able to turn to Lutetium-177 and not get any long-lived isotope to produce. Actually, what's more important in the spec is not Ytterbium-176 being over 99.5%. It's actually how low Ytterbium-171 is. They're going to want to see that. You know, I'm very confident about the spec, but I haven't got it yet. They're going to want to see that. That's really what they need to see before they can sign up to a supply agreement or an order. We've got a lot of interest in Ytterbium.

We probably have two kilograms of indicated demand already from customers.

Speaker 2

I'm just going to jump a couple of questions because there's quite a few on ytterbium. You mentioned the ability to scale up the ytterbium-176 plant by adding additional vessels. Is that still something you expect to do?

Speaker 1

It is, yes. Whether we do it in the existing building or whether we, you know, do it in a new building, we'll have to wait and see. You know, it doesn't take long to add more vessels, does it? What are your thoughts on that?

Speaker 0

Yeah, that's the easy part. I mean, when the beam goes through the first vessel, you absorb very little of the light. You have a lot of laser light left for numbers of vessels to follow.

Speaker 2

It's a sort of question you've sort of answered, Hendrik, around the number of passes to get to 19.75%. Are there any technical limitations to reaching that? How many additional passes do you have to do?

Speaker 1

We haven't disclosed the number of passes we have to do. Hendrik, any technical challenges out of that?

Speaker 0

No, I mean, in single runs, we've demonstrated about 90% enrichment already. You also do a little bit, so you actually need to have a sweet spot where you run your batches.

Speaker 2

What do you think the actual demand is for Ytterbium-176 in the market?

Speaker 1

Yeah, that's a difficult one to answer. Right now, we've clearly got interest in two kilograms from various customers. You know, Pluvicto, I think only in its third year since launch. Pluvicto is likely, you know, growing over the next several years as well. There are a number of other peptide radiotherapeutics in development from other companies. Universal have opened up many more applications for Pluvicto.

Speaker 2

Oh, very quickly, can you bring the microphone a little bit closer? It's a little bit muffled, the audio. If you could just bring it a little bit closer to you, please.

Speaker 1

Is that better?

Speaker 2

That's better.

Speaker 1

Okay, yeah. You know, Pluvicto is only in its third year since launch. You know, it's still growing very strongly. There are lots of clinical trials to expand the number of indications for Pluvicto. In addition to that, there's a number of companies running drugs with Lutetium-177 as well. You know, I think we're in the early stages of the product cycle. You know, we'll have to wait and see how big it actually ends up becoming in years to come. I've only answered today about 2 kilos of demand.

Speaker 2

Okay, two kilos. In terms of two kilos of demand, in terms of ramping production, it's going to be a function of the demand you see for it, or do you have plans to ramp up production?

Speaker 1

We have plans to ramp up production without needing the orders in hand.

Speaker 2

Okay. Okay, we're coming back now a little bit to the financials and also to the contracts with the SMR company. Given your expansion plans for the second half, do you expect to be doing another equity raise?

Speaker 1

Yeah, I think if you look to our balance sheet on December 31, we've never had that much cash in our balance sheet at the end of the year. If you look at how much operating cash flow we spent last year, it's about $15 million. You know, if you look at $15 million at the $60 million we finished the year with, it's about four years of operating free cash, operating burn sitting on the balance sheet. You know, we hope to get cash flow break even or better in the second half of the year. When you look at the capital cost of building these laser plants, it's not that significant. Our internal capital's really pretty remarkable. So the Ytterbium-176 plant probably came in at about, you know, maybe $3 million, that kind of number.

We spent $2.5 million initially, and we added about $2.5 million of CapEx in the final few months. You know, these plants are large and not expensive.

Speaker 2

Okay. Before we get on to TerraPower, a couple of questions around the QLE convertible note. Any progress around the note? Also, today, a new subsidiary was added as part of the scene in the 10K, QLE TP Funding LLC. Can you talk a little bit about what that is, what that subsidiary is for, and also any progress on the QLE convertible note?

Speaker 1

In terms of progress on the QLE convertible note, you know, I mean, I think that will convert into QLE stock on the spin-out. I mean, there's not much progress to be made there when the spin-out will get converted. In terms of that new subsidiary, ASP TP Funding, you know, it's difficult for me to really comment on actually where that was in there. You know, when we fund the South African plant, it's likely our partner will want to fund it via a US entity, not via South African entity. That is an entity that's set up to receive capital to flow into South Africa to build a uranium facility.

Speaker 2

Okay, so into TerraPower now. Lots of questions here in terms of the current status of the contract, things like the prepayment timelines, and the sort of bigger question of TerraPower as a US partner.

Speaker 1

We're talking to a number of potential US partners, one of whom is likely to be TerraPower. They clearly have a good relationship with the US government, the DOE, the nuclear regulator. Other people are closer to the uranium enrichment cycle than they are. We will see. In terms of the status of the contract stuff, you know, we will announce to the market when we've signed a definitive supply agreement, a definitive investment agreement, which is what we are working on at the moment. You know, supply agreements and investment agreements are quite challenging things to put together. They take a long time.

You know, so just by way of example, you know, who's shipping the product, who takes title of the product, when and when, who's getting the feedstock for the block, what the feedstock's going to look like, what the spec of the feedstock is going to be. All of that has to be detailed in the contract. What our final specification is going to be and the form it's going to be supplied in, what cylinder it's going to be in, how it's going to be shipped. You know, so there's an awful lot of information that has to go into a supply agreement. They take some time to write. You know, we're working on that at the moment.

Speaker 2

I mean, in the meantime, Oklo have made no secret of their respect for your business and vice versa. What's your relationship with Oklo like?

Speaker 1

You know, I can't really, yeah, I can't really, you know, we sign NDAs with most of our customers. I can't really talk about potential customers or partners or what have you. I like Oklo. I think Oklo's a great company. They've got a great SMR. I think they're probably first to market with their SMR. You know, they've got a good business model as well. They've got a huge backlog of customers, a huge backlog of customers.

Speaker 2

Okay, we'll move on from that. Two questions about permitting. Actually, the first one's about regulation. I mean, you and I had an amazing meeting a couple of months ago in Pretoria with Necsa. What are your relationships like? Or how are the regulatory discussions going with the South African government at the moment?

Speaker 1

Yeah, actually, they're going really well. I was actually invited to Pelindaba with the government ministers just last week to celebrate the 60th birthday of their nuclear access supply reactor. You know, we have regular calls with Necsa. You know, each side brings different skills to the table here. Clearly, we bring the technology and the engineers able to design and build the facility. They've got a huge amount of experience in regulatory licensing, permitting, that kind of stuff. You know, we're talking to the regulator at the moment, what we want to do. You know, we have the first test bench ready to go. We're kind of building the second test bench at the moment.

You know, it'd be great if we can get those done through the first half of this year and start doing something in the second half of the year.

Speaker 2

Just in Pan and Dharma, you've talked in the past that they have shovels in the ground. Can you slightly expand on that?

Speaker 1

Yeah, so we need to build two test benches to test our enrichment processes at Pan and Dharma. The first is built. The second is not yet built. It is being built, being procured, and being constructed. And, you know, we will announce to you guys when the second one is built and when we get the permits and are allowed to go in and start enriching product there.

Speaker 2

Can you give us some update on where we are with permitting in Iceland and also when will the building of the plant start?

Speaker 1

Yeah, so again, discussion with the Icelandic regulator is going very well. The Icelandic government is going very well. I went to Iceland in January for a couple of days to meet with the government ministers. It's a bit of a shock going to Iceland in the winter from the South African summer, but I continuously went up there to meet with them. They have got a great reception. They are very excited about us coming to Iceland to build medical isotope facilities and, you know, facilities that enable next generation semiconductors.

Speaker 2

Okay, some questions, I mean, lots of questions, by the way, I'm not going to ask that have come in because they refer to questions that have been asked already. There will be transcripts, and this is being recorded as well. You'll be able to see answers to those questions. What is your vision for the company's growth over the next three to five years? Are there any specific milestones you aim to achieve?

Speaker 1

You know, we've got internal targets that we haven't communicated those externally. You know, our goal is to build many more isotope enrichment facilities, some down here in South Africa, some in other countries, and expand our footprint into other regions. If we do that, you know, hopefully the PNR will follow.

Speaker 2

Headcount changes in the next 12 months. Do you have some idea of headcount now and where you see yourself in the next 12 months?

Speaker 1

Right now, we're at 130 something on December 31st. Now we're more like 150. We probably need to add a few more people still. You know, they will come in over the next, you know, next couple of quarters. We have enough headcount now to operate the existing facilities that we have. They're fully staffed. We're carrying the costs of those actually through most of last year. Yeah, we will selectively add more people. I think the big hires we need to make this year, you know, I think we need to hire a head of medical isotope sales in the United States and want to do it as well. I think we need to add a head of electronic gases sales in the United States, or globally, I guess. They're the three main hires I think we're now ready to hire.

You know, we've held off making those big hires until we were actually in convertible production. Now we are starting to make, you know, about the time to make those hires.

Speaker 2

Okay, so there's quite a few questions. I'm going to be a bit fast and furious here, Paul and Hendrik, on this one. When do you start, when do you actually think you'll start enriching product in Pan and Dharma?

Speaker 1

Yeah, that's out of my control. You know, that comes down to the regulator. I'd like to think we can do it this year. Obviously, I can't make any guarantees for that because it comes down to the NNR, which is the National Nuclear Regulator. They've been very supportive. This is classified as a high-impact project for the country. It's getting a lot of attention from the government and from the regulators. You know, hopefully there'll be forthcoming and cooperative and helpful.

Speaker 2

How are the market prices changing in the three producing isotopes at the moment?

Speaker 1

Carbon-14 is a fixed $24,000 a gram. You know, that's a take-or-pay contract at that price. That's fine. Ytterbium, again, we've had no pushback from customers when we talk about $20,000 a gram. There seems to be a lot of demand at that price. Silicon-28 is the one where I think we will lower the price a bit. We've been talking about $500,000 a kilo up until now. I think we can bring that price down a bit to try and push more demand into the marketplace and make it so that we know the scope of the market so that people get excited about using Silicon-28 and then find more places to use it.

As I think I've said before, if we can build the Silicon-28 plant in Iceland and it's of the right scale and of the right size, I'd like to think we can be selling it at $20 a gram and still make a 75% gross margin. That is obviously some years away. That is, you know, as with most things in life, that's crawl or walk then run.

Speaker 2

Okay, so obviously we had the Fuzzy Panda issue back in November last year, which we've sort of got over in terms of intellectually. But in terms of sell-side coverage, the question here is, it would be great to get more sell-side coverage just to lend more sort of credence to the story. Are there any updates coming here?

Speaker 1

You know, I talked to a number of investment banks. I was in New York a few weeks ago, talking to a number of investment banks. You know, it's fingers crossed, let's wait and see. Hopefully, yes.

Speaker 2

Okay, a question here. The Cyclotron Centre in Norway, are there any collaborations? What's the current relationship there and any ongoing collaborations?

Speaker 1

Again, you know, with customers, we sign NDAs and we can't really talk about our discussions with other government entities and that kind of stuff. We know the Norway Cyclotron Centre very well. It's a really good centre. It supplies most of Norway with its PET isotopes and its BECT isotopes. Actually, all the GE and R&D is done there as well. It's got a great group of scientists up there. It's a pretty impressive facility. Yeah, we know it well.

Speaker 2

With Lignum, with Molybdenum-99 and Molybdenum-100 enrichment, are there any potential partnerships with US organizations in enrichment development there?

Speaker 1

We're having discussions. We have had discussions with US potential partners there. That's the biggest commercial opportunity I think we have in medical isotopes. It will take a while to get into. There are certain customers that want to take Ytterbium-176 or Ytterbium-174 and convert it into Ytterbium-177 or to Lutetium-177.

Speaker 2

Okay, I'm not going to sort of ask this as a question because I think it's more of a comment that's come through. I think a lot of people are quite keen now with the sort of from the CFO perspective that we get financial results in a more timely manner. How would you respond to that?

Speaker 1

Yeah, I think last year, before Heather joined as CFO, we missed two of the deadlines by about three or four days. At least this time we filed on time, which was March 31. Heather's doing a great job. She's putting in place a lot of the controls and the procedures and processes that we need in order to be SOX 404B compliant and SOX 404A compliant. You know, with that comes more automated, better invoicing and what have you. You have to remember down here in South Africa, a lot of invoicing is still done on paper. You know, it just takes time for auditors and accountants to get this piece of paper together and put it into financial statements.

Speaker 2

Okay, thank you. Are you seeing any new emerging competitors with the market opportunity ex-Russia?

Speaker 1

No, we're not, no. Actually, a couple of small universities are now starting to be split if you turn in 176 and target a few grams. But we're certainly things like Silicon-28, Carbon-14. There's not seemingly any competitors there. You know, Silicon-28 is an interesting one. So in theory, Orano, Urenco, and Rosatom can all embrace Silicon-28. When you talk to semiconductor companies, they can't use the Silicon-28 they produce very easily because it's bitter silicon tetrafluoride. And they can't get it to 6N purity. And they can't, and what they really care about is the amount of diacylene, chloroacylene, methoxylene, and the siline. And so they're struggling to use it. And I think that's, so while I'm told they can produce it, there hasn't been much of a market impact or demand for it from semiconductor companies.

Speaker 2

Do you, I mean, obviously there's a lot of press at the weekend about Novartis and Pluvicto. Do you want to talk about how many new contracts you expect to sign in Silicon-28 in the coming year?

Speaker 1

Silicon-28, I'd expect, we're talking to four or five customers right now. I expect to sign contracts with all of them at some point.

Speaker 2

Questions back again about the short interest in the stock. I mean, we're now at 30%, which is sort of strong bearish sentiment. Sorry, Paul, do you mind just moving the microphone even a bit closer to you, please?

Speaker 1

Yes, the microphone's stuck on the wall over there by the television.

Speaker 2

You, Paul, Mr. Mann, could you pull the microphone off the wall, please? Sorry, to everyone saying you can't hear it clear, this is as clear as we're going to get it. I'm sorry about that. Just on the short interest in the stock there, that 30%, you know, I mean, we've done a lot of work on this and we obviously know that a lot of it is quant driven. It's based around Algo that looks for sort of growth stocks, pre-revenue, exhibiting certain characteristics. Nonetheless, the stock is still down 50% since the Fuzzy Panda report. Is there any message, and it sounds a bit of a trite question this, but you would like to give to short sellers and naysayers?

Speaker 1

Listen, the market requires end sellers to work. I've had to spend most of my career trading stocks. You know, it takes two to make a market. What I would say is the short interest in most of the nuclear stocks is pretty high. If you look at Oklo, Nano Nuclear, Centrus, I think it's all pretty high. There's a lot of non-believers in nuclear.

Speaker 2

No, they are. That's right. I think a lot of that, as I say, is a function of the way in which the algos are set. If you look at the distribution amongst the shorts, you know, there is a very large number of them. A couple more questions. I know we're getting towards the end of the time. A lot, just so you know, I'm not going to be answering all of them, but a lot is around analyst coverage, when you're going to bolster institutional interest. Here we have one here asking about when we'll get independent commercial third-party confirmation that enriched silicon is 150% more efficient than unenriched silicon.

Speaker 1

The answer to that is I don't know because it's unlikely. It's unlikely that Intel, TSMC, and so forth will publish the results they get in their research facilities. There are some scientific papers, some scientific papers out there, you know, stating those numbers. I mean, the experiments have been done already. I'd be surprised if our customers who aren't academics publish their work.

Speaker 2

Okay, I think we're getting relatively close to the end. Any more questions? It's last chance to type them up. One last question about capacity utilization at PET Labs for radiation isotopes. Can it be increased at low cost?

Speaker 1

The answer is we are increasing it. PET Labs is running flat out right now. It's running flat out through the entire last year. They're doing four production runs a night currently, which is huge. We've added a little bit of Cyclotron into PET Labs here in Toronto. We are actually in the PET Labs building today. We're at PET Labs offices today. That's waiting for the final approval from SAFRA, which should come in the next sort of few weeks or so. That can start producing more commercial products and really ease the supply shortage. Our spec lab just received its commercial license last week. We should see good growth in PET Labs this year with those new assets coming on stream.

Speaker 2

Okay, lots of questions again about spin-out of QLE. We've talked about that already. That will be in the notes afterwards. What is your view of post-enrichment after nuclear radiation of isotopes?

Speaker 1

Exact question again?

Speaker 2

What's your view of post-enrichment, i.e., after nuclear radiation of isotopes?

Speaker 1

I don't really have a view on that. I mean, we make stable isotopes and then we sell them to customers, many of whom then irradiate them. I guess we irradiate them at PET Labs.

Speaker 2

Someone here who's obviously been following you, you said the balance sheet used to keep you up at night. Now you're producing isotopes. What keeps you awake now?

Speaker 1

You know, I mean, when you're competing against governments, that's always a concern. You know, there's a lot of, you know, I think one of our main competitive advantages are our capital, cost to build a plant is so low. You know, if a lot of these companies who want to build large centrifuges get a lot of free money from the government, then, you know, that will take away our competitive advantage. Hopefully, governments are going to be more restrained about giving away a lot of free money to our competitors. It feels like there's more adults in the room now than there were two years ago.

Speaker 2

Great. Okay, just one thing. As I say, there's lots of people asking about analyst coverage. One thing I will say is there is a hosting channel called Curation Connect where there is an excellent ASPI page which gives all the relevant information in both short form, long form video, links to all the reporting accounts, to the videos that Paul has done, to expert views and work. It's Curation Connect and you go into showcases and you go to ASPI Isotopes. That's a very good repository for those that are looking for more sort of analyst coverage. Yeah, I will drop a link of that analyst coverage to someone's asking for that link. We'll send that afterwards. It's [email protected]. Hendrik and Paul, that was excellent. The news coming out is excellent. The critics are being answered.

We've got our results out on time as well. Everything's progressing in the right way. I'd like to thank you for your time. I think we'll probably look to try and do this in a couple of months' time again. Thank you all for attending.

Speaker 1

Thank you. Again, for your questions and thank you to the audience for listening. No stress.

Speaker 2

Thank you. Thank you.